Medtronic's Q1 2026: Unpacking Contradictions in CAS Growth, Diabetes Demand, and Ablation Recovery

Cardiac Ablation Solutions Growth:
- Medtronic's Cardiac Ablation Solutions (CAS) grew nearly 50% this quarter, with low 70s growth in the U.S. and low 30s in international markets.
- This growth was attributed to high demand for the Pulsed Field Ablation (PFA) system, including the PulseSelect anatomical catheter, Sphere-9 focal catheter, and Affera mapping system, driven by high utilization rates and positive clinical data.

Neuroscience Segment Growth:
- Medtronic's Neuroscience business grew 3%, with high single-digit growth in Neurosurgery and Neuromodulation.
- This growth was supported by strong execution in Spine AiBLE ecosystem updates and innovative closed-loop sensing technology in Pain Stim and Brain Modulation. However, the Specialty Therapies segment had some delivery changes, impacting growth.

Diabetes Business Performance:
- The Diabetes segment grew 8% overall, with 11% growth in international markets due to the Simplera sensor technology.
- Growth was driven by strong adoption of the 780G system and refined sensor technology, but U.S. growth was slightly slower due to the ramp-up of new sensor production.

Financial Performance and Guidance:
- Medtronic reported Q1 revenue of $8.6 billion, growing 8.4% reported and 4.8% organically.
- The company raised its full-year EPS guidance due to strong quarterly performance, expecting fiscal year 2026 organic revenue growth of approximately 5% with a revenue tailwind of $550 million to $650 million from foreign exchange movements.